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EUR 100m Hungarian-Japanese Capital Fund Established

The Hungarian Development Bank (MFB) and Japan's SBI Holdings signed an agreement on December 15, 2008 to set up an EUR 100 million capital fund.

The Hungarian Development Bank (MFB) and Japan's SBI Holdings signed an agreement on December 15, 2008 to set up an EUR 100 million capital fund.

MFB Chairman Janos Eros said the fund will focus on financing SMEs with investments of EUR 5-7 million, thus improving the capital-financing possibilities of the sector. MFB owns 40 pct of the fund, while SBI Holdings owns 60pct.

Minister of National Development and Economy Gordon Bajnai said this agreement shows that there are foreign investors who have confidence in Hungary and the region and are willing to invest capital at a time when it is possible to purchase stakes in companies at a reasonable price.